Israel Withholds One Month's Tax Revenues from PA

Finance Minister says taxes and tariffs collected this month will not be transferred, due to PA's UN bid.

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Gil Ronen, 02/12/12 17:34

Minister Steinitz

Israel news photo: Flash 90

Israel will not transfer the funds it collects for the Palestinian Authority (PA) this month in response to the PA's successful bid for upgraded UN status, Finance Minister Yuval Steinitz said on Sunday.

"I have no intention of transferring the taxes due to the Palestinian Authority this month. They will be used to pay the Palestinian Authority's debts to the Israeli electricity company," he said.

Speaking ahead of the weekly cabinet meeting, the finance minister stressed his decision comes after "the raising of the status of Palestine at the UN."